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This study aims to examine the dynamic effect of ownership structure on firm performance using generalized method of moments (GMM) estimator to alleviate various endogeneity issues. Inconsistent results along with a general lack of empirical evidences, especially in emerging markets, leave uncertain message regarding the nature of association between ownership structure and firm performance. This research stresses the style pioneered by Wintoki et al. (2012) in terms of including lagged values of the dependent variable as an explanatory variable in the model, to provide evidence that the optimal empirical model should be a dynamic model rather than a static one. Therefore, this thesis purpose is to examine and detect the dynamic relationship between ownership structure (namely, managerial, family, government and foreign) and firm performance (ROA, ROE, and Tobin’s Q) over the period from 2011 to 2020 in the Egyptian capital market, within agency theory framework. The empirical results confirm that the performance of Egyptian listed-firms has a significant positive link with their lagged performance (i.e. ownership-performance has a dynamic relationship). Furthermore, this thesis supports the inclusion of government in firm’s ownership as it can improve their performance (ROA and ROE). However, managerial ownership and foreign ownership, contrary to expectations, does not provide incentives to align interests and reduce agency costs, with respect to firms’ ROA. Similarly, results indicate that managers and family owners shouldn’t be encouraged as they have negative effect on ROE. Moreover, results showed insignificant relationship between various ownership variables and market- based performance measure (Tobin’s Q).